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Top 5 Things You Need To Know About BIoT – Blockchain Internet Of Things

What is Internet Of Things

The interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.

The IoT is the next big thing in technology growing at a rapid pace. Statistic projects that by 2025 the number of connected devices around the world is set to grow up to a staggering 75 billion devices.

What is Blockchain Technology?

A block is a record of new transactions or digital information. This block grows forever. These blocks are linked and secured using cryptography. Cryptography is the practice of creating and deciphering codes.

A list of digital information linked and secured with cryptography is a Blockchain. Once the data is stored, it is not possible to modify it.

Real-World Problems with IoT

Globally companies are finding it hard to track problems, create fixes and secure devices as it requires a huge investment. There are many real-world problems like,

Building software to respond to the automated inquiries.

Storage space for new versions of software.

Network bandwidth to send it all out to millions of users instantaneously.

Decentralized Network

A decentralized approach to IoT networking would solve many of the problems above. Adopting a standardized peer-to-peer communication model to process the hundreds of billions of transactions between devices can be a huge benefit.

It will significantly reduce the costs associated with installing and maintaining large centralized data centers. Similarly, it will distribute computation and storage needs across the billions of devices that form IoT networks.

However, establishing peer-to-peer communications will present its own set of challenges, chief among them the issue of security.

Blockchain for Internet of Things

Blockchain technology may have the solution to this problem. In theory, by merging IoT and Blockchain together, you can create a verifiable, secure and permanent method of recording data processed by “smart” machines.

To put it simply, Blockchain technology can be used in tracking billions of connected devices. It will enable the processing of transactions and coordination between devices.

This decentralized approach would eliminate single points of failure, creating a more resilient ecosystem for devices to run on. The cryptographic algorithms used by blockchains would make consumer data more private.

Blockchain technology is the missing link to settle scalability, privacy, and reliability concerns in the Internet of Things.

Blockchain for IoT Benefits

IBM states that there are 3 key benefits of using Blockchain for IoT.

Ensures trust between parties and devices and reduces the risk of collusion or tampering.

Helps in reducing costs by forgoing- intermediaries and middlemen.

Accelerates transactions and reduces settlement time from days to almost instantaneous.

Here are the top 5 things you need to know about BIoT.

Smart Cities

Atherois building a complex platform for smart cities, using Ehereum which combines Finance, Blockchain and The Internet Of Things.

Wireless Sensor Networks (WSN) across city public transit systems, provide rapid updates and data visualization to assist cities in combating devastating air pollution.

Home Security

BlockChain can help IoT providers create a more secure and efficient network for consumers with Smart Homes.

Most of the Smart Home IoT services use cloud-based servers which have become easy targets for hackers. A hacker would have to break into a majority of the network’s nodes to gain controllable access to the devices on IoT system.

Blockchain Cars

Automakers like BMW, Ford, Renault, General Motors, Toyota, Porsche, Mercedes etc, are currently developing new mobility ecosystem that could accelerate the development of autonomous driving technology.

With more than 958 autonomous car patents Bosch is playing a major role in promoting Mobility Open Blockchain Initiative (MOBI). Bosch hopes to speed up the adoption and change transportation.

It also wants to make sure the industry is on the same page. For example, with use cases like autonomous payments, ride-sharing, secure data sharing, and usage-based insurance.

Supply Chain and Logistics

Traditionally a centralized server authenticates movements of goods and materials or decides to halt supply.

With Blockchain, IoT devices on a peer-to-peer, mesh network can execute transactions without a central server.

It can also help combat counterfeiting. Using Blockchain with RFID and other sensor techs can help streamline supply chains by improving the accuracy of product tracking, verification, security, management and evaluation of processes.

IBM and shipping giant Maersk have developed a shipping solution called TradeLens which ensures there is little to no interference from middlemen.

Food Safety

Blockchain in IoT can help ensure food safety.

Ambrosus a global decentralized blockchain and Internet of Things platform has partnered with NDS (a subsidiary of Korean food producer Nongshim) to track and trace beef sold by food retailer Mega Mart.

With QR codes, the specific cow, its origin, veterinarian’s health check of the meat, and transportation conditions of products will all be easily accessible to the consumer through a smartphone scan.

Conclusion

There are several other interesting uses for Blockchain in IoT and with both the technologies continuing to evolve, it would be interesting to see how the course of the technologies change.